Child Care Vouchers

Jessica Morden: To ask the Chancellor of the Exchequer what estimate he has made of the proportion of parents receiving childcare vouchers from employers who pay income tax at the basic rate.

Stephen Timms: Published research, commissioned by HM Revenue and Customs in 2006, by the National Centre for Social Research (NatCen) found that 7 per cent. of the recipients of child care vouchers were basic rate taxpayers in late 2005. The report is available at:
	http://www.hmrc.gov.uk/research/research-report23.htm
	30 per cent. of child care voucher recipients were higher rate taxpayers, who account for 6 per cent. of parents. This group also receive a proportionally higher amount of the relief that goes to parents through Employer Supported Childcare due to their higher marginal tax rates.